Internet shop business plan

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Internet shop business plan

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Town B Although Town B looks more competitive 10 competitors vs. The definition of a potential customer will depend on your type of business. For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range.

As in the example above it is likely that most companies would have only one person in charge of purchasing furniture hence you wouldn't take the size of these businesses in consideration when assessing the number of potential customers. You would however factor it when assessing the value of the market.

Market value Estimating the market value is often more difficult than assessing the number of potential customers.

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The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body. It is very likely that you will find at least a number on a national level.

If not then you can either buy some market research or try to estimate it yourself. Methods for building an estimate There are 2 methods that can be used to build estimates: The bottom up approach consist in building a global number starting with unitary values. In our case the number of potential clients multiplied by an average transaction value.

Let's keep our office furniture example and try to estimate the value of the 'desk' segment.

internet shop business plan

We would first factor in the size of the businesses in our delivery range in order to come up with the size of the desks park. Then we would try to estimate the renewal rate of the park to get the volume of annual transactions. Finally, we would apply an average price to the annual volume of transactions to get to the estimated market value.

internet shop business plan

Here is a summary of the steps including where to find the information: You can get the number and size of businesses in your delivery area from the national statistics.

Your accountant should be able to give you the useful life of a desk but you should know it since it is your market!

You can compare the desk prices of other furniture stores in your area. As a side note here: That was the bottom up approach, now let's look into the top down approach.A Business Plan is not simply a description of your business.

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Online Shop Business Plan